A Normal Good Is Defined by Economists to Be a Good

question 95

Multiple Choice

A normal good is defined by economists to be a good

• A) with a negatively-sloped demand curve.
• B) that is purchased by at least 75 percent of the population.
• C) that is bought by consumers with normal tastes.
• D) whose demand increases when incomes increase.
• E) whose demand decreases when incomes increase.

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Definitions:

Controllable Revenues

Revenues earned by the profit center.

Income Statement

A financial report detailing a business's income, outgoings, and net profit or loss for a certain timeframe.

Responsibility Accounting Reports

Internal financial reports that track the financial performance of specific departments, managers, or units, highlighting areas of responsibility.

Profit Centers

Parts of a company treated as standalone businesses responsible for generating their own revenues and profits.